2ndWave Software

2ndWave Acquisition Criteria

We target software companies with SOME of the following criteria:

  • Software company
  • Software product line(s)
  • Divisions of larger company
  • $5M to $50M in revenue (although we will consider smaller opportunities for tuck-in acquisitions or to expand into new markets)
  • Software solutions which provide mission critical technology
  • Good installed base with recurring revenue streams
  • Strong market position
  • “Sticky” customer relationships
  • Reasonable valuation expectations

2ndWave will look at software businesses that many other investors may not consider, including software companies that are not performing well:

  • Currently is not showing growth
  • Currently is not profitable
  • Does not have an active sales process, investment materials like a memorandum or a polished management presentation
  • Does not have audited / reviewed financials
  • Does not have a complete leadership team

The bottom line is that 2ndWave will look at opportunities that have good foundations, but may be a little “messy”. We can move quickly and decisively.